Indonesia’s Path to Sustainability: Exploring the Intersections of Ecological Footprint, Technology, Global Trade, Financial Development and Renewable Energy

• Published in: Studies in Systems, Decision and Control
• Main Author: Raihan A.; Voumik L.C.; Ridwan M.; Akter S.; Ridzuan A.R.; Wahjoedi; Soseco T.; Ismail N.A.
• Format: Book chapter
• Language: English
• Published: Springer Science and Business Media Deutschland GmbH 2024
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85202529858&doi=10.1007%2f978-3-031-65203-5_1&partnerID=40&md5=eb2814c164de986910e8e6f3a8375bcf

Understanding the complex relationship between socio-economic factors and environmental sustainability is crucial in devising effective strategies for sustainable development goals. This study analyses the impact of renewable energy use, economic growth, financial development, trade globalisation, and technological innovations on Indonesia’s ecological footprint from 1990 to 2020. Using the autoregressive distributed lag (ARDL) approach and other estimators, the study examined the short- and long-term correlations between the environmental footprint and related factors. The results suggest that renewable energy consumption, trade globalisation, and technical advancements are associated with a decrease in the ecological footprint. At the same time, economic growth and financial development are linked to an increase. These findings underscore the need for policies that promote renewable energy use, green growth, and funding for technological advancements to achieve sustainable development goals. Finally, this study highlights the importance of balancing economic growth with environmental protection and the urgent need to prioritise sustainable practices for the benefit of current and future generations. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.